7 Rebate Stats That Will Make You Want To Up Your Marketing

7 Rebate Stats That Will Make You Want To Up Your Marketing2019-01-102019-01-18https://www.incentiveinsights.com/cms-wfc/wp-content/uploads/2017/09/incentive-insights-logo-1.pngIncentive Insightshttps://www.incentiveinsights.com/cms-wfc/wp-content/uploads/2019/01/incentive-insights-statistics-rebates-e1547128784294.jpg200px200px

The new year is a great time for reflection. How have your marketing efforts changed in the past year? In what areas do you feel like you have an opportunity to improve? Have you considered implementing a rebate program?

A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales–and a great way to get your products off the shelves.

Interestingly enough, rebates have been around since the 1800s when railroads would give price reductions to certain guests. (It has since become much more sophisticated.)

In U.S. history, the rebates received by the Standard Oil Company were a major factor in that company’s attainment of a monopolistic position in the oil industry.

But that’s just the beginning.. We dare you to read through these seven rebate statistics and not want to implement rebates into your marketing mix!

Recent Rebate Statistics That Marketing Professionals Should Know

1. Rebates make consumers 75.4% more likely to make a purchase.

Data from the Promotion Marketing Association shows that consumers today are 75.4 percent more likely to buy your product when there is a rebate present. Consequently, this is why manufacturers continue to use rebates as a promotional tool to get their products off shelves faster.

The Impact Of Cash Rebates On Likelihood To Purchase

75.4%

More Likely To Buy

15.4%

No Effect

9.1%

Less Likely To Buy

For relative comparison, promotions such as contests only increase the likelihood to buy by 42.5 percent and sweepstakes only by 39 percent. Rebates, where a consumer gets a free gift with purchase, have shown to increase their purchase likelihood by 82.8 percent!

2. Over half of internet users between 18 and 29 years old said discounts and coupons had a high impact on overall digital purchasing decisions.

Importance of discounts and coupons to the overall digital purchasing decisions according to internet users in the United States as of March 2018, by age group:

Additionally, another misconception is that young consumers aren’t responsive to rebate programs. The chart above shows the importance of discounts and coupons to the overall digital purchasing decisions according to internet in the United States, sorted by age.

According to the March 2018 findings, 53.8 percent of internet users ranging between the ages of 18 to 29 years stated that discounts and coupons were a very important feature in the overall digital purchasing decision. This isoften the age of many influencers companies are targeting.

In comparison, only 34.3 percent of users aged 60 years and above stated the same.

5. 47% of consumers predicted they would use their mobile devices to search for rebates for shopping during this holiday season.

In which of the following ways, if any, do you plan to use your mobile device(s) to do your shopping this Holiday Season?

The chart above documents the responses of consumers who were asked: “In which of the following ways, if any, do you plan to use your mobile device to do your shopping this holiday season?”

Almost half (47 percent) said they use it to search for coupons/rebates! So if your rebate isn’t promoted, think of all the potential traffic your company is missing out on. Time and time again, consumers are telling us that they actively seek rebates and coupons. It’s important to make sure you show them you are listening.

6. Consumer reports over the course of a year, 70 percent of consumers had taken advantage of manufacturer rebates on products.

In one year, 70 percent of consumers had taken advantage of manufacturing rebates. This goes to show the continued impact of rebate marketing in the B2C market.

This statistic is a great reminder that when planning your rebate program, you need to plan for high redemption and understand the factors that influence the participation of your consumer base.

Participation is not a bad thing. Yes, it costs your company money, but the loyalty gained from your consumer base and the positive reputation gain is ultimately what will increase your sales in the long run.

7. Techbargains.com estimates that rebate redemption rates range from 10 to 30 percent when payoff is $10 to $30.

Note: For all purposes ‘redemption’ is defined as: the participation of a recipient who is accepting an award (cashing a check, spending funds, receiving their free product, etc.) as advertised in the rebate offer.

One of the key factors that is important to look at when analyzing your rebate impact and redemption is the value add of the rebate–especially with a cash back rebate.

For instance, Techbargains.com reported that when looking at information on dozens of rebates offered by companies including Apply, Sony, HP and Panasonic, the redemption rate was higher (10-30 percent) when the payoff was between $10 and $30. The rate fell far below 10 percent for smaller dollar amounts!